Logistic Hard Copy Final

8/11/2019 Logistic Hard Copy Final.

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INTRODUCTION TO LOGISTICS ND

LOGISTICS PL NNING


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Index

Sr No Topics

1 Introduction

2 Objectives Of Logistics

3 Types of Logistics

4 Function Of Logistics

5 Why logistics matters

6 Logistics Management

7 Logistics Planning

8 Bibliography


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Introduction

The word logistics is derived from the Greek word logistike, meaning scienceof computing and calculating. In ancient times logistics involved the practical art

of moving armies engaged in combats. Since that time logistics has come to imply

moving men and material on war footing to achieve desired results. The term

logistics was first used by the military to describe the activities associated with

maintaining a fighting force in the battle field and in its strictest sense, to describe

the housing of troops. Logistics is concerned with getting the products and services

when they are needed and when they are desired. Logistics is concerned with the

organization, movement, and storage of material and people. It deals with the

planning and control of the flow of materials and related information in

organizations. Its main objective is to get the right materials to the right place at

the right time while optimizing the total operational costs of this process.

It is difficult to accomplish any marketing or manufacturing without logistical

support. It involves the integration of information, transportation, inventory,

warehousing, material handling, and packaging. Over the years the meaning of the

term logistics has gradually expanded to include business and service activities.

The domain of logistics activities is to provide customers with the right goods inthe right place at the right time. It ranges from providing the necessary

subcomponents for manufacturing to having inventory on the shelf of the retailer to

having the correct quantity and type of blood available for a surgical procedure in a

hospital.


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Logisticsis themanagement of the flow ofresourcesbetween the point of origin

and the point of consumption in order to meet some requirements.

For example: Of customers or corporations.

The resources managed in logistics can include physical items, such as food,

materials, equipment, liquids, and staff, as well as abstract items, such as time,information, particles, and energy. The logistics of physical items usually involves

the integration of information flow,material handling,production,packaging,

inventory,transportation,warehousing,and oftensecurity.The complexity of

logistics can be modeled, analyzed, visualized, and optimized by dedicated

simulation software. The minimization of the use of resources is a common

motivation. The major issue that logistics attempts to resolve is to decide how and

when raw-materials, semi-finished, and finished goods should be acquired, moved,

and stored. It is essentially a planning process and an information activity .So anintegrative process that optimizes the flow of material and supplies through the

organization and its operations to the customer

A fundamental characteristic of logistics is its holistic, integrated view of all the

activities that it encompasses. Therefore, while procurement, inventory

management, transportation management, warehouse management, and

distribution are all important components, logistics is primarily concerned with the

integration of these activities to provide maximum value to the overarching

system.

The operating responsibility of logistics is the geographical repositioning of raw

materials, work in process, and finished inventories where required at the lowest

cost possible.

LOGISTICS is defined as Time related positioning of resources The

whole concept of logistics is based on 7 Rs (of customer service) which are:

Right product

Right quantity

Right quality

Right way

Right time

Right cost
http://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Resourceshttp://en.wikipedia.org/wiki/Materials_managementhttp://en.wikipedia.org/wiki/Production_(economics)http://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Transportationhttp://en.wikipedia.org/wiki/Warehousinghttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Securityhttp://en.wikipedia.org/wiki/Warehousinghttp://en.wikipedia.org/wiki/Transportationhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Production_(economics)http://en.wikipedia.org/wiki/Materials_managementhttp://en.wikipedia.org/wiki/Resourceshttp://en.wikipedia.org/wiki/Management


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Right customer

DEFINITIONS:

The art of managing the flow of material and products from the source to

user. The logistic system includes the total flow of material, from the

acquisition of raw materials to the delivery of finished products to ultimateuser.

The process of strategically managing the movements and storage ofmaterials, parts and finished inventory from suppliers between enterprise

facilities to customers

Logistics is the process of strategically managing the procurement,

movement and storage of materials, parts and finished inventory through

the organization and its marketing channels in such a way that current andfuture profitability are maximized through the cost-effective fulfillment oforders.

Logistics is the art and science of management, engineering and technical

activities concerned with requirements, design and supplying, maintainingresources to support objectives, plans and operations.

Planning implementing and controlling the physical flow of material and

finished goods from point of origin to point of use to meet customer`s need

at a profit

The branch ofmilitary science having to do with procuring, maintainingand transporting material, personnel and facilities.
http://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Military_sciencehttp://en.wikipedia.org/wiki/Military_science


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Objectives of logistics

Rapid response

Flexibility objective of an organization: Some companies measure this as

response time to customers order. On an average how much time do we

need to fulfill one particular type of customers order in a year? This is a

measure of rapid response. Logistics should ensure that the supplier is able

to respond to the change in the demand very fast. Entire production should

change from traditional push system to pull system to facilitate rapid

response. Instead of stocking, the goods and supplying on demand, orders

are executed on shipment to shipment basis information Technology playsan important role here as an enabler. IT helps management in producing and

delivering goods when the consumer needs them. This results into reducing

of inventory and exposes all operational deficiencies. Now the management

resolves these deficiencies and slashes down costs. [Concept of SMED and

KANBAN as practiced by JIT companies in Japan or elsewhere]

Minimum variance

D-delivery objective of an organization, this can be measured as On Time

Delivery

or OTD. If 100 deliveries are made in a month/quarter/year how many

reached as per the commitment made to the customer? This percentage is

OTD.


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Any event that disrupts a system is variance. Logistics operations are disrupted by

events like delays due to obstacles in information flow, traffic snarls, acts of god,

wrong dispatches, damage in transit. Traditional approach is to keep safety stocks

and transport the goods by high cost mode. The cost of this approach is huge.

Logistics is expected to minimize these events, thereby minimize and improve onTime Delivery.

Minimum inventory

This is component of cost objective of a company. Inventory is associated with

a huge baggage of costs. It is termed as a necessary evil. Objective of minimum

inventory is measured as Inventory Turns or Inventory Turnover Ratio.

Americans call this measure as turn velocity. Logistics management reduces

these turns without sacrificing customer satisfaction. Lower turns ensureeffective utilization of assets devoted to stock. [Concept of single piece flow as

practiced by JIT companies in Japan or elsewhere]. Logistical management

should keep the overall well being of a company in view and fix a minimum

inventory level without trying to minimize the inventory level as an isolated

objective

Movement consolidation

Transportation is the biggest contributor to logistics cost. Transportation cost

depends on product type, size, weight, distance to be transported etc. For

transporting small shipments just in time [reduction in inventory costs] expensive

transport modes are used which again tend to hike the costs. Movement

consolidation is planning several such small shipments together [of different types

of shipments] by integrating interests of several player s in the supply chain.

Generally, large shipment size and long distances reduce transportation cost per

unit. Movement consolidation shall result into reduction in transportation costs

Quality

If the quality of product fails logistics will have to ship the product out of

customers premises and repeat the logistics operation again. This adds to costs and

customer dissatisfaction. Hence logistics should contribute to TQM initiative of

management. In fact, commitment to TQM has made the management world over


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wake up to the significance of logistics function. Logistics can play a significant

role in total quality improvement by improving the quality of logistics performance

continuously and continually

Two Main View Points of Logistics

Inbound logistics

Creation of value in a conversion process heavily depends on availability of inputs

on time. Making available these inputs on time at point of use at minimum cost is

the essence of Inbound Logistics. All the activities of a procurement performance

cycle come under the scope of Inbound Logistics.

Scope of Inbound Logistics covers transportation during procurement operation,

storage, handling if any and overall management of inventory of inputs. Several

activities or tasks are required to facilitate an orderly flow of materials, parts or

finished inventory into a Manufacturing complex. They are sourcing, order

placement and expediting, transportation, receiving and storage. Overall,

procurement operations are called inbound logistics. Inbound logistics have

potential avenues for reducing systems costs.

Delivery time, size of shipment, method of transport & value of products involved

are different from those of physical distribution cycles. Normally delivery is large

as a low cost transportation mode is chosen. As the value of inventory is low, sizeof shipment is large & transit inventory costs are low.

Outbound Logistics

Value added goods are to be made Value added goods are to be made available in

the market for customers to perceive value. Finished goods are to be distributed


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through the network of warehouses and supply lines to reach the consumer through

retailers shops in the market. During conversion value is added to the raw

materials and as a result value of the inventory in this case is very high unlike

inputs. Now the size of shipment, modes , of transport and delivery time are

different as compared to inputs. Activities of shipment, distribution performancecycle come under the scope of Outbound Logistic

Types of Logistics

Return Logistics (Reverse Logistics):

In order to increase the sales as well as the market share, many companies

advertise that their goods will perform well over a period of time. The customer is,

therefore, led to believe that in case he buys the product of that company, he is

assured of satisfactory performance of the product. But at the same time, it is very

much obvious that the company cannot assure the satisfactory performance of each

and every of its product which is sold in the market. Few of the products sold may

not perform as advertised over the specific period of time. Such products need to

be brought back by the company to confirm good customer service. MultinationCompanies (MNCs) to protect their market image and to stall its competitors from

grabbing its customers, recall immediately the defective or substandard product

from the market. Product recall is a critical competency resulting from increasingly

rigid quality standards product expiration dating responsibility for hazardous

consequences The company has, therefore, to take into account the defective goods

that would be returned while framing the total logistical system network and

calculating the total cost of such a system of network. Incorporating the goods

returned in the total logistical systems network and cost is called as ReturnLogistics. Return Logistics requirement also result from the increasing number of

laws prohibiting random scrapping and disposal on one hand, while encouraging

recycling of waste such as beverage containers, packaging materials, etc. The most

significant aspect of return logistical operation is the need for maximum control

when a potential health liability exists. E.g.: a contaminated drug in the market is


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extremely dangerous and the company has to recall all the stock of contaminated

drug.

Military Logistics

Military logistics is the art and science of planning and carrying out the movement

and maintenance of military forces. In its most comprehensive sense, it is those

aspects or military operations that deal with: Design, development, acquisition,

storage, distribution, maintenance, evacuation, and disposition of material,

evacuation, and hospitalization of personnel, acquisition or construction,

maintenance, operation, and disposition of facilities.

Third Party Logistics (3PL)

3PL, Third Party Logistics describes businesses that provide one or many of a

variety of logistics related services. Types of services would include public

warehousing, contract warehousing, transportation management, distribution

management, freight consolidation. A 3PL provider may take over all receiving,

storage, value added, shipping, and transportation responsibilities for a client and

conduct them in the 3PLs warehouse using the 3PLs equipment and employees or

may manage one or all of these functions in the clients facility using the clients

equipment, or anything combination of the above. 3PL can be defined as the

Business of proposing physical distribution reforms to a client and undertaking

comprehensive physical distribution services.Third party logistics (3PL), a new

business model for physical distribution, originated in

the U.K. & became highly popular in U.S. in the 1990s. 3PL providers offer

innovative alternatives to clients in the form of comprehensive logistics services.

Because 3PL requires that providers have intimate access to the corporate strategy

of their clients, relationships are based long term contracts as a rule The growing

demand for 3PL can be attributed to both demand,& supply side factors. (1)

faced with deregulation & growing competition, transport companies are seekingnew business opportunities, & (2) clients are seeking to outsource their logistics

operations cut costs & focus management resources on core businesses.

Fourth Party Logistics


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Traditionally, suppliers and big corporations have been meeting the demands by

increased inventory, speedier transportation solutions posting on-site service

engineers and many times employing a third party service provider. Today they

need to meet increased levels of services due to e-procurement, complete supply

visibility, virtual inventory management and requisite integrating technology. Nowcorporations are outsourcing their entire set of supply chain process from a single

design, make and run integrated comprehensive supply chain solutions. This

evolution in supply chain outsourcing is called Fourth Party Logisticsthe aim

being to provide maximum overall benefit. Thus a fourth party logistics provider is

a supply chain integrator that assembles and manages the resources, capabilities

and technology of its own organization with those of complementary service

provider to deliver a comprehensive supply chain solution. It leverages the

competencies of third party logistics providers and business process managers todeliver a supply chain solution through a centralized point of contact. As the fourth

party logistics provider caters to multiple clients, the investment is spread across

clients-thus taking the advantage of economies of scale.


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Function Of logistics

Transportation management: Transportation enables the means of transfer

of inventory given the location & network framework developed earlier.

This involves the selecting the modes of transportation like Air, Water, Rail,

Road & the decisions relating to outsourcing this activities to other

agencies. Selection of the modes of transportation depends on the following

factors:

Speed & reliability

loss& damage Inventories

Freight rate

Market competitiveness

Company policy & customer influence

External market influences.

Inventory management: Inventory management concerns with the decision

regarding the amount of type & material stored at various facility location.

These decisions will be affected by the decision made under the function of

facility location & transportation e.g.: the location of warehouse & retailoutlets.& modes of transport whether fast or slow will affect the quantity

type of material to be stored at facilities location.

Warehousing management: Warehousing provide the adequate space for

the inventory at the right location, unpack aging, sorting, & consolidation of

material & modification of material elements if required .the role of

warehouse provide the economic & service benefit to the logistical system


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Packaging: It helps in achieving the objective of maintaining the material in

the right condition through the logistics process. Packaging decision is

impacted by requirement of other activities like protection & facilitation

during transportation, material handing & storage as so ultimately customer

requirements.

Why Logistics Matters?

In the past, logistics was considered a custodial activity. Storekeepers were thecustodians of supplies stored in small storerooms and large warehouses.

Consequently, the science (and art) of logistics, and the people who make thehealth logistics system work, were not considered an important part of familyplanning, HIV and AIDS, or vaccination programsto name only a few.

Fortunately, as time passed, more and more program managers have come to

understand how important logistics is to a programs success. he goal of a health

logistics system is much larger than simply making sure a product gets where it

needs to go. Ultimately, the goal of every public health logistics system is to helpensure that every customer has commodity security. Commodity security exists

when every person is able to obtain and use qualityEssential health supplies whenever he or she needs them. A properly functioning

supply chain is a critical part of ensuring commodity security financing, policies,

and commitment is also necessary. Effective supply chains not only help ensurecommodity security, they also help determine the success or failure of any public

health program. Both in business and in the public sector, decision makers

increasingly direct their attention to improving supply chains, because logistics

improvements bring important, quantifiable benefits. Well-functioning supplychains benefit public health programs in important ways by

increasing program impact enhancing quality of care

improving cost effectivenessand efficiency.

Logistics increases program impact


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If a logistics system provides a reliable supply of commodities, more people are

likely to use health services. Customers feel more confident about the healthprogram when they have a constant supply of commoditiesit motivates them to

seek and use services. Figure 1-1 shows the impact of improved product

availability.Notice that, as the availability of a mix of contraceptive methods improves, the

contraceptive prevalence rate (CPR) for the public sector increases. When a choiceof contraceptive methods is available in Health programs cannot succeed facilities,

more women use contraception. When more unless the supply chain delivers awomen use contraception, it impacts a number of key reliable, continuous supply

of health public health indicators: maternal mortality, infant commodities to its

customers. Mortality and total fertility rates all decrease. No product? No program!Logistics matters.

Logistics enhances quality of careWell-supplied health programs can provide superior service, while poorly supplied

programs cannot.

Likewise, well-supplied health workers can use their training and expertise fully,directly improving the quality of care for clients. Customers are not the only ones

who benefit from the consistent availability of commodities. An effective logistics

system helps provide adequate, appropriate supplies to health providers, increasingtheir professional satisfaction, motivation, and morale. Motivated staff are more

likely to deliver a higher quality of service.

Logistics matters.

Logistics improves cost efficiency and effectivenessAn effective supply chain contributes to improved cost effectiveness in all parts of

a program, and it can stretch limited resources. Strengthening and maintaining the

logistics system is an investment that pays of in three ways. (1) It reduces losses

due to overstock, waste, expiry, damage, pilferage, and inefficiency;(2) It protects other major program investments; and (3) it maximizes the potential

for cost recovery.


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Importance of Logistics to a Company:

Small business owners also conduct distribution logistics with inventory and

warehousing. And, every small business owner can tell you about how they handle

reverse logistics, with returned merchandise or refusal of services. Larger

businesses may deal in all four logistic fields.

In the business environment, logistics either have an internal or external focuses

(inbound or outbound). Depending upon the business involved, this part of the

chain can be simple or complicated. For more complicated procedures, third partiesoften are hired to conduct any one of the four fields within business logistics.

Third-party logistics (3PL) involves using external individuals or organizations to

execute logistics activities that have traditionally been performed within an

organization itself. If, for example, a company decides to export its product, it may

hire a person or organization to help with distribution logistics. Today, there is a

movement toward building fourth-party logistics (4PL), which integrates 3PL

competencies and other organizations to design, build, and run comprehensive

supply chain solutions. A 4PL general contractor would manage other 3PLs,truckers, forwarders, custom house agents, and others, essentially taking

responsibility of a complete process for the customer.

Another specialty includes logistics consulting services. Firms in this industry

specialize in the production and distribution of goods, from the first stages of

securing suppliers to the delivery of finished goods to consumers. Such firms give


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advice on improvements in the manufacturing process and productivity, product

quality control, inventory management, packaging, order processing, the

transportation of goods, and materials management and handling. In the process,

these consulting firms might suggest improvements to the manufacturing process

in order to use inputs better, increase productivity, or decrease the amount ofexcess inventory. Consulting firms in this segment of the industry also advise on

the latest technology that links suppliers, producers, and customers together to

streamline the manufacturing process.

Even project management requires logistics, as one vein of this science coordinates

a sequence of resources to carry out projects. Typical constraints in project

management include scope, time, and budget, or the same constraints involved in

business logistics. The time constraint refers to the amount of time available to

complete a project.

Logistics Management

Logistic management provides a major source of competitive advantagein otherwords a position of enduring superiority over competitors in terms of customer

preference may be achieved through logistics. Logistics management encompassesall material flow management. From the inflow of purchase material into works

material flow through manufacturing processes and material flow to customerslogistic management covers both physical flow of products as well as information

flows. It evolves procedures hat meet customer service at minimum cost. The costreduction is achieved by speeding the flows of materials, work in process and

finished products.Logistics management is the part ofsupply chainmanagement thatplans,implements,andcontrols theefficient,effective,forward,

and reverse flow and storage ofgoods,services,and related information between

thepoint of origin and thepoint of consumption in order to meet customer'srequirements. A professional working in the field of logistics management is called

a logistician.

1.Materials management

2.Channel management

3.Distribution (or physical distribution)

4.Supply-chain management

The Chartered Institute of Logistics and Transport (CILT), established in the

United Kingdom in 1919, received a Royal Charter in 1926. The Chartered

Institute is one of the professional bodies or institutions for the logistics and
http://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Control_(management)http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wiktionary.org/wiki/effectivehttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wiktionary.org/wiki/effectivehttp://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Control_(management)http://en.wikipedia.org/wiki/Implementationhttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/Supply_chain_management


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transport sectors that offers professional qualifications or degrees in logistics

management.

DEFINITION:

The process of planning, implementing and controlling the efficient,effective flow and storage of goods a d services related information right

from the point of origin to the point of consumption in order to satisfy

customers requirement.

Logistics management includes the design and administration of systems to

control the flow of materials, work in progress and finished inventory to

support business unit strategy

Automation software

Software or cloud-based SaaS solutions are used for logistics automation whichhelps the supply chain industry in automating the workflow as well as management

of the system. There is few generalized software available in the new market in thesaid topology. This is because there is no rule to generalize the system as well as

work flow even though the practice is more or less the same. Most of thecommercial companies do use one or the other of the custom solutions.

But there are various software solutions that are being used within the departments

of logistics. There are a few departments in Logistics, namely: ConventionalDepartment, Container Department, Warehouse, Marine Engineering, HeavyHaulage, etc.

Software used in these departments

Conventional department: CVT software / CTMS software.

Container Trucking: CTMS software Warehouse : WMS/WCS

Improving Effectiveness of Logistics Management

1. Logistical Network

2. Information


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3. Transportation4. Sound Inventory Management

Logistics Management in India in Todays Context

Logistics in Indian Business Environment

Liberalization opens our door to competition.

Global business has long supply & distribution lines.

Changing Indian customer, aware, demanding and less brand loyal

Competition ensures that product differentiation in terms of quality is difficult. Product life cycles are shrinking

Our markets are shifting from sellers to buyers

Many consumer products are moving into commodities market

In India, large distances separate production and consumption centers. Essential

commodities have to travel from Food Corporation Warehouses to consumers

through PDS.

Still Logistics performance in India has not been impressive Fruits and

vegetables are grown at various places but do not enjoy access to market.

LOGISTICS IN THE GLOBALISATION

Logistics functions are same domestically and globally but differ in four Ds i.e.

distance, documents, diversity in culture and demand of customer. In the global

logistics distances are longer, documentation is more extensive, customer demand

varies to satisfy cultural differences within both, countries and regions. Developing


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strategies to respond to the 4 D environment is the global challenge for logistics

management.

There are some factors that facilitate globalization and necessitate global logistics

and also some barriers that continue to impede global logistics. Logisticsmanagement must balance the cost of overcoming these barriers with the potential

benefits of going goal

Logistics Planning

The internal production capacity expansion plans and also suppliers expansion

plans are concurrently decided on the basis of sales forecast. Outsourcingis given priority only aft er inte rnal capa city is full y u sed. The

money is a l ready spent for in ternal capaci ty in f rom of p lantma ch in er y an d persons the cost already gets added due to those

expenses. So vendoring out should be considered only after the internalcapacity is fully used up. The extent of future logistical

activities is based on forecasts customer orders andpromotions. The budget for the inventory has to be made plan for efficient

logistical operations and t he plans for Manufacturing and procuring the inventoryitems have to be synchronized this synchronizing should be preferably done

by dedicated software dedicated Software is available in MRP and MRP1packages The procurement of materials required for manufacturing and

order fulfillment the logistics activity flows outline the sequence of logisticsOperations from order receipt through order processing distribution And

dispatching and transportation to customer delivery this involves Inventorymanagement activities in order to reconcile inventory availability based on

prior planning and ordering for actual requirements.

Definition:Planning is the list of the activities to achieve a typical goal, which is

fitting in the budgeted expenses and possible to achieve. The planning is


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the ma in fu nct io n at eac h and eve ry group in the company. At the top of

company people have to device the mission for the company. They haveto set a goal for the company. To achieve the goal of the company proper

planning has to be done

Logistics planning processProper logistics planning entails considering logistical aspects throughout thevarious stages of the procurement process. It contributes to efficient procurement

processes, and reduces the risk of incurring problems that may lead to additionalcosts and delay.

Logistics planning starts at the needs assessment phase of procurement by

considering the desired result of the requisitioned and the end-user and from thereworking backwards to determine what will lead to a successful completion of the

activity. Ideally this process should begin even before the requisition is placed,

through close cooperation and efficient communication between the operationalunit requesting the purchase and procurement officers.

Phase 1: Problem Definition and planning

1. Feasibility Assessment

Situational analysis(to provide senior management with the best

understanding of the strengths and weaknesses of the existing capabilities

and includes internal review, market assessment and competitive evaluation

and Technology Assessment)

Supporting logic development ( evaluates current procedures and practices

and identifies areas with improvement potential and includes clear plans for

potential redesign )

Cost benefit estimate ( Benefits should be categorized in terms of services

improvements and cost reduction)

2. Project Planning:

Statement of objectives

Statement of constraints Measurement standards (includes definitions of how cost components are

calculated and also relevant customers service measures and method of

calculation.

Analysis procedures


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Project work plan (a project work plan must be determined and the resources

and time required for competitions identified)

Phase 2: Data Collection and analysis

1. Assumptions And Data collection:

Define analysis approach and techniques (most common techniques are

analytical, simulation and optimization)

Define and review assumptions ( Includes Business assumptions; market

consumer, and product trends and competitive actions, Management

assumptions alternative distribution facilities, transport modes, logistics

processes and fixed and variable costs and Analysis assumptions defines

the constraints and limitations that must be included to fit the problem tothe analysis technique)

Identify data resources

Collect Validation Data (The objective of validation is to increase

management credibility regarding the analysis process and to ensure that

the results of the analysis accurately reflects the reality. Comparison

should focus on historical activity and expense levels)

2) Analysis

Define analysis questions ( involves defining specific analysis questions

concerning alternatives and the range of acceptable uncertainty)

Complete and validate baseline analysis

Complete alternative analysis

Complete sensitivity analysis

Phase 3 Recommendations and Implementations

1. Development of Recommendations

Identify the best alternatives

Evaluates Costs and Benefits

Develop a Risk Appraisal

Develop Presentation


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2. Implementation

Define Implementation plan

Schedule Implementation

Define acceptance Criteria

Implement

Bibliography

Internet sources:

Wikipedia

Google Search Engine

Logistics Reference Books

Documents

Logistic Hard Copy Final